Solar Panel Savings in Tennessee
Tennessee gets 4.5 peak sun hours per day with electricity at 12.5¢/kWh. See how much you can save with solar panels.
Solar Panel Cost & Savings by System Size in Tennessee
| System Size | Gross Cost | After Credits | Payback | 25-Year Savings | Annual kWh |
|---|---|---|---|---|---|
| 6 kW | $16,200 | $11,340 | 6.7 yrs | $42,388 | 9,855 |
| 8 kW | $21,600 | $15,120 | 8.6 yrs | $41,756 | 13,140 |
| 10 kW | $27,000 | $18,900 | 10.5 yrs | $37,976 | 16,425 |
| 12 kW | $32,400 | $22,680 | 12.2 yrs | $34,196 | 19,710 |
Includes 30% federal ITC + 0% Tennessee state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.
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Is Solar Worth It in Tennessee?
Tennessee averages 4.5 peak sun hours per day, which means an 8 kW solar system would produce approximately 13,140 kWh per year. At the state's average electricity rate of 12.5¢/kWh, that translates to significant annual savings on your electric bill.
With the federal 30% Investment Tax Credit and Tennessee's 0% state incentive, an 8 kW system costing $21,600 drops to just $15,120 after credits — with a payback period of approximately 8.6 years.
Over 25 years, homeowners in Tennessee can expect to save $41,756 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of solid sun exposure and federal incentives makes solar a solid investment in Tennessee.